Discussion:
For more than ten years, the city and Canterbury have been working on various ways to redevelop Canterbury and improve the infrastructure that services the general area. The EDA and City Council adopted a TIF plan that set aside approximately $33 million (present value) of tax increment to fund public improvements.
SRF was engaged to complete a traffic study of the entire area and identify improvements that are necessary today and by 2040. SRF studied a much larger area and did find that there are non-Canterbury related improvements that the city will need to address including a future signal at CH 101 and Shenandoah.
This agreement lays out the specific requirements and how funds will be distributed. The city will issue TIF Bonds for approximately $10 million to pay for the following improvements:
- reconstruction of 12th Avenue
- Eagle Creek/Vierling roundabout
- Internal roundabout
- Funds for CH83 improvements
The reconstruction of 12th Avenue includes reconstructing and improving the area east of CH 83. This particular area is not being addressed by Scott County as part of their proposed improvements to CH 83 and is problematic because of driveway and traffic conflicts at Super America and Culvers. This area is outside of the TIF District.
The funds will also be used to pass through to Scott County for additional improvements to CH 83 including turn lane widening, better access controls and improvements to access to and off the 169 ramps. Scott County will receive approximately $1,130,000 of the proceeds.
The bonds will be paid back out of the tax increment. The Doran development by itself provides adequate increment to cover the city's bonds.
Canterbury will be funding privately the construction of Shenandoah and Barenscheer including ROW acquisition to allow alignment at Valley Industrial Drive. There is approximately $16 million allocated for these two roads. They are both required to be constructed as part of the agreement. Shenandoah is necessary for linking through the site per the 2030 Comprehensive Plan and to serve the area. Barenscheer is critical to alleviate traffic control issues at 12th and CH 83 and is also designed to direct traffic into Canterbury from the north, providing an additional relief valve to 169. Scott County will likely also use Barenscheer as a detour route during construction when the concrete improvements are being built on CH 83 adjacent to Canterbury.
The remaining $7 million in the TIF is designated for the extension of Vierling. Canterbury has proposed creating a transformational urban development adjacent to the track area. At this time, there is no developer for that portion and the final road has not been designed.
There are a number of triggers in the agreement. Canterbury must substantially complete Shenandoah and Barenscheer. If they do not, the agreement can be terminated and the city can assess the property and complete the roads. The city also has the right after the four year performance period, to find a developer to complete the more urban section of the development.
While it has taken many years to reach this point, the project is projected to create more than $400 million in development. The Doran development is approximately $100 million. There are also several job creation locations in the plan. These sites are being marketed as high wage locations and for corporate headquarters. There has been significant interest in the locations.